Omaha, of course, is the city where Mr. Buffett is from. It is where he was born, where he grew up, where he works from, and where he lives.

He lives in a frugal home, drives a regular day to day car, and for all practical purposes- leads a normal, ordinary life. If you saw Warren Buffett in a supermarket in Omaha, you probably would not take a second look (unless, of course, you knew what he looked liked).

The big difference, here, of course, is that Warren Buffett happens to be one of the the wealthiest individuals in the world today.

You might be asking yourself this question right now: What does Omaha have to do with Mr. Buffett’s success?

The answer: Everything!

Warren Buffett lives and breathes the hometown he grew up in. That same approach can be seen in his investments.

His holding company Berkshire Hathaway buys companies that he truly believes in on the most fundamental levels. Similar to the basic, some might say “ordinary” life he leads, he believes in basic investment philosophies and applies them to his investments.

His philosophy? Understand the company you are buying on the most fundamental level. If you can understand what the company does and understand its value addition, then you’re in good shape.